Citi sees CMS Medicare ruling as neutral for TCAR Procedures

Citi keeps a Buy rating and $48 price target on Silk Road Medical, though the stock is down about 19% afterhours at $26.50 following the proposed decision on Medicare stenting coverage by the CMS. The proposed decision paves the way for broader diagnosis and treatment of patients with carotid artery disease, but investors will likely be concerned that a level playing field will drain TCAR procedures to CAS, or carotid artery stenting, instead of moving more CEA, or carotid endarterectomy, to stenting, the analyst tells investors in a research note. The firm adds that while Silk Road shares will likely move lower on the national coverage determination, with the stock down about 40% year-to-date, some of the impact should already be in the stock.